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Freezing orders

05 January 2012
Issue: 7495 / Categories: Case law , Law digest , In Court
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Parbulk II AS v PT Humpuss Intermoda Transportasi TBK and other companies [2011] EWHC 3143 (Comm), [2011] All ER (D) 173 (Dec)

In circumstances where a cause of action defendant, against whom it was appropriate to make a freezing order at the suit of a claimant, had a debt, or other receivable owing to it by a third party, or a claim or potential claim against a third party, the English court had jurisdiction to grant a freezing order against the third party, in appropriate circumstances, to restrain the third party from dissipating its assets up to the amount of its debt to, or the claim by, the judgment debtor. Whether the court would grant a freezing order with respect to a third party would be a matter for the exercise of its discretion.

If, for example, the circumstances showed collusion, or impropriety, or some participation on the part of the third party, in attempts by the defendant to render itself judgment proof, then it might be appropriate for a freezing order to be granted against the third party itself.
 

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